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Smart Shopper Owe more than it's worth... I'm upside down and I can't get up!
1160 messages, Last post on Oct 22, 2009 at 7:11 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: joel0622 (Mar 10, 2007 1:40 pm) I can wipe my feet on them because as a CPA, I've had close financial relationships with several of these BHPH shops. I've also terminated my services to all of them . I don't do business with folks when I'm not morally comfortable with their business plan. I've also cut clients involved with resort sales (selling "memberships" to people that can't afford it at 20% interest, repo'ing, then selling it again...), cash advance stores, and just plain folks I don't like. Not everyone can pick their clients, but I do and it's worked out well. I really doubt any are going to tell you "yeah, we love it when folks default" as these guys are trying to keep a low profile. Last thing they want are legislators breathing down their necks like some of these other questionable businesses. |
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...if a person owes money on a car and dies? Does the car get repo'd or is the loan written off? Say the person was single and had no family or life insurance.
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Replying to: lemko (Mar 12, 2007 5:40 am)  With or without a family or estate, I doubt that the dealer will leave the car sitting in the driveway for long. Alive or dead, no pay no car! |
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Replying to: lemko (Mar 12, 2007 5:40 am) |
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folks, I've got a 2004 Aero 9-5 Wagon that has about 18 months to go on a 4 year lease. So far, unlike my prior Saabs, this car has been flawless. My question is, what should I do as far as the lease goes. If I keep driving at the present rate, I'll be at 62000 miles on a 48,000 lease. Also, my warranty is up at 50k too if I'm not mistaken. Should I try to get out now? Consider an extended warranty and try keeping it next year? Its about $10k upside down at this point due to having to roll in negative equity from a sludged Saab. Thanks. |
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Replying to: phollie (Mar 15, 2007 8:58 pm) Get the exact payout, and if you're upside down because of a dealer's appraisal, see if you can sell the car yourself privately. With Honda, lease customers can sell the car themselves, pay the payout to Honda Finance, and keep the rest for themselves if there is any equity left that way. I don't know if you can do that with Saabs though. If you're upside down $10k even when you sell it privately, see if anyone would want to take over your lease, but that might be a tough sell, as the warranty is almost up. If you do really like the car though, and you think it's worth keeping, then I would seriously consider getting the extended warranty, so that you have some protection after you buy out the car. Otherwise you have to ask yourself if it's worth buying a warranty on a car you will be returning in 18 months. One thing to be weary of is having excess mileage penalties, AND repair costs added on to a car that's not yours. The costs could add up quite quickly. The thing I wouldn't do is to roll the negative equity into another car. This way you'll just drive yourself to the poor house. |
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Replying to: phollie (Mar 15, 2007 8:58 pm) The cheapest way out? Buy a $3000 beater, and park that Saab when it hits 49,900 miles.. That way, no out of warranty costs and minimal mileage charges.. At the rate you are driving, that will only be 10 months of driving a beater.. When the lease is up, turn in the Saab and sell the beater, and start with a clean slate... This is way cheaper than paying maintenance/repair bills on a used Saab, or buying an extended warranty and paying the over-mileage charges.. Of course, you won't be driving a Saab for a year. Don't lease for four years.... and don't take a lower mileage allowance than you need.. regards, kyfdx Edit: Buy the beater now.. Use it to commute... You'll still have the mileage on the Saab to use for weekends/travel..etc.
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Replying to: kyfdx (Mar 16, 2007 5:11 am) |
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Replying to: kyfdx (Mar 16, 2007 5:11 am) My advice is to not make payments on something to have it sit in the garage. Drive it, if you go over on miles so be it but at what you project your mileage would be at .20 a mile you are talking about $2800. Don't try to trade it you would lose 4 times that.
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Replying to: joel0622 (Mar 16, 2007 9:38 am) If your old POS car needs a bunch of work, you can just dump it... You are out $3000 at most... A Saab out of warranty? The potential loss is unlimited (well.. at least up to the residual value)  I do agree... driving the Saab and racking up the mileage charges would be preferable to trying to trade it in for a $10K loss.. But, I'll stick with my beater recommendation.. I want that Saab in warranty until it leaves my driveway.. regards, kyfdx
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